Apple announces faster, cheaper iPhone
CEO Steve Jobs unveils the much-anticipated 3G iPhone; cuts the iPhone price to $200; takes aim at the BlackBerry.
By Scott Moritz, writer
Apple CEO Steve Jobs speaks in San Francisco on Monday.
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Fortune -- Apple announced on Monday a much faster iPhone that's half the price of the current model.
The news is expected to address one of the biggest complaints about the hugely popular iPhone: That its network is too slow. CEO Steve Jobs said the new iPhone, which is based on technology known as 3G, is 36% faster than top rival Nokia's N95 smartphone.
As Fortune.com first reported, the new 8-gigabyte iPhone will cost $199 and a 16-gigabyte version will cost $299. Jobs says the new iPhone will be available worldwide starting July 11. It will allow up to six hours of Web browsing and five hours of talk time.
Jobs announced the 3G iPhone, which had been rumored for months, at the company's annual World Wide Developers conference in San Francisco.
He also introduced a slew of new applications for the iPhone, including a wireless system that automatically forwards e-mail to other devices, a friend-finding service called Loopt and mobile blogging software from TypePad.
Other new applications for the iPhone include a service from MLB.com that provides a live scoreboard of major league games and music-making software, called Cow Terry, for creating songs on the phone.
The new iPhone applications are aimed at boosting revenue from data services. Wireless companies increasingly are looking to these services to offset slowing growth in mobile phone sales. Apple, for instance, will charge $99 a year for its new Mobile Me service, which sends updates to a user's e-mail, contact list and calendar to all of her devices.
The new services drew plenty of 'oohs' and 'aahs' from the 5,200 attendees at Apple's developers conference. But the main attraction was the 3G iPhone.
Since the original iPhone was introduced nearly a year ago, Apple (AAPL, Fortune 500) has sold 6 million handsets, Jobs said Monday. The company has set a goal of selling 10 million handsets worldwide this year.
But iPhone users have complained loudly about the cumbersome EDGE network, which is operated by AT&T (T, Fortune 500), the exclusive seller of the iPhone in the United States.
Jobs kicked off the conference by talking about the iPhone for business users, a lucrative market dominated by rival Research in Motion (RIMM). He said that the iPhone now works with Microsoft's Exchange office server systems - a key feature if the iPhone hopes to crack the BlackBerry's lock on working professionals.
Jobs also said that 35% of the Fortune 500 has participated in a beta program for business applications for the iPhone.
Also, Jobs announced that the new version of the Mac operating system OS X is called "Snow Leopard."